vodafone complete project
TRANSCRIPT
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ACKNOWLEDGEMENTPreparing a project of this nature is an arduous task and I wasfortune enough to get Support from a large number of persons. I wish to my express my deep sense of Gratitude to all thosewho generously helped successful completion of this report Bysharing their invaluable time and knowledge .
It is my proud and privilege to express my deepregards to respected Mr ANAND TIWARI ( HOD) ,Department of business. Management Govt. Girls P.G.College of Excellence , Sagar , for allowing me toundertake this project
I feel extremely exhilarated to havecompleted this project under the able and inspiringguidance of Miss DIPTI PATEL , Mrs. SHIKHA URMIL KHAN &Mr. SHAILENDRA PATEL. They render me all possible helpand guidance while reviewing the manuscript in finalizing
the report .
I also extend my deep regard to my teachers,family members , friends and all those whoseencouragement has infused courage in me to complete thework successfully.
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DECLARATION BY CANDIDATE
Date:
I declare that the project report tittleADVERTISING STRATEGY OF VODAFONE is my own work
conducted under the supervision of Mr.SHAILENDRA PATEL
(Guest-Lecturer), Department of Business Management ,
Govt. Girls P.G Collage Of Excellence , Sagar . To the best of
my knowledge the report does not contain any work , which
has been submitted for the award of any degree, anywhere.
Sheetal
patel
BBA 4th sem
2nd year
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CERTIFICATE
The project report titled ADVERTISING STRATEGY OF
VODAFONE has been prepared by Sheetal patel , BBA 4th
sem under the guidance and supervision of Mr.SHAILENDRA
PATEL for the partial fulfillment of the degree of BBA.
Signature of the Signature of the Signature ofthe head Supervision Examinerof the Department
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ABSTRACTIn the year 2007, the world's largest telecom company in
terms of revenue, Vodafone Plc (Vodafone) made a major
foray into the Indian telecom market by acquiring a 67
percent stake in the Indian telecom company, Hutchison
Essar Ltd, through a deal with the Hong Kong-based
Hutchison Telecommunication International Ltd. It was the
biggest deal in the Indian telecom market. Vodafone's main
motive of going in for the deal was its strategy of expanding
into emerging and high growth markets like India. In 2007,
India had emerged as the fastest growing telecom market in
the world outpacing China. But it still had low penetration
rates, making it the most lucrative market for global
telecom companies.
Though Hutchison Essar was one of the established players
in this market, Hutchinson Telecommunication International
Ltd. had exited India as the urban markets in the country
had become saturated.
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This brand management project aims to track Vodafone
success in the Indian market right through its launch on 21st
September 2007.
The report is divided into three parts: Introduction, Analysis
and Conclusion. The introduction section mainly gives an
overview of the Indian Telecom industry, and about the
company - Vodafone. The Analysis section deals with
competitors of Vodafone, and also giving an outline of the
competitive growth of the telecom companies. It also
discusses the various re-branding strategies adopted by
Vodafone in order to successfully penetrate into the Indian
market. A detailed
analysis of the telecom brand Vodafone is done for the
purpose of the study.
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WHAT IS TELECOMUNICATIONTelecommunication is the transmissions of signals over a
distance for the purpose of communication. In modern times
this process almost always involves the sending of electro
magnetic waves by electronic transmitters but in earlier
years it may have involved the use of smoke signals drums
or semaphore lines.
HISTORY OF TELECOMMUNICATION:The history of telecommunication began with the use of
smoke signals & drums in Africa the America & parts of Asia.
Smoke signals
In the 1790s the first fixed semaphore systems emerged in
Europe however it was not until the 1830s that electrical
telecommunication systems started to appear. This article
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details the history of telecommunication & the individuals
who helped make telecommunication systems what they are
today.
Early telecommunication included smoke signals & drums.
Drums were used in natives like Africa, New Guinea & South
America & smoke signals in North America & China.
In 1792 a French engineer Claude Chappe built the first
visual telegraphy for semaphore system between Chile &Paris. This was followed by a line from Strasburg to Paris.
SOME OF THE MOST POPULAR TELECOMCOMPANIES IN INDIA:
A.P TELECOM
A.P.-telecom officer's service telephone numbers can be
viewed by clicking the concerned telecom district. A.P.
telecom circle is serving the whole state of Andhra Pradesh
including the twin cities of Hyderabad and Secundrabad.
ASC ENTERPRISES LIMITED (ASCEL)
Ascel is a multi venture corporate heralding the
"convergence" era in our country, focusing on nationwide
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retailing of time (telecom, information & learning, media,
entertainment) products & services, satellite and digital
wireless communication ventures for provision of
infrastructure, services and solutions among other
initiatives.
AIRCEL
Popular provider in Tamil Nadu
BANGALORE TELECOM
Bangalore telecom system is a communications window to
the rest of the world. Offer a wide range of telecom services
from basic telephone service to high speed data circuits.
BHARTI ENTERPRISES
Established in 1985, Bharti has been a pioneering force in
the telecom sector with many firsts and innovations to its
credit, ranging from being the first mobile service in Delhi,
first private basic telephone service provider in the country,
first Indian company to provide comprehensive telecom
services outside India.
COMMSOUTH
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Commsouth was founded in Chennai, in the mid nineties;
Commsouth has grown steadily and established sound
positions in the mobile telephony and telecom management
software market.
CELLEBRUM
Cellebrum is a company of M Corp global group with
interests in the field of telecom solutions, office automationand information technology and value added services. Asias
leading value-added mobile services and solutions provider
on platforms like sms / ivrs / wap / gprs / ussd etc.
CRICKET COMMUNICATIONS
Cricket is the operating subsidiary of leap wireless
international, a customer-focused company providing
innovative mobile wireless services targeted to meet the
needs of customers who are under-served by traditional
communications companies.
ESSAR GROUP
The Essar group is one of Indias largest corporate houses
with interests spanning the manufacturing and service
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sectors in both old and new economies: steel, power,
shipping, constructions, oil & gas and telecom.
IDEA CELLULAR
India's leading GSM mobile services operator, idea cellular
has licenses to operate in 11 circles. With a customer base
of over 17 million, idea cellular has operations in Delhi,
Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya
Pradesh, Chattisgarh, Uttaranchal, Haryana, UP-west,Himachal Pradesh and Kerala. Idea acquired spice telecom
which was operating in Karnataka and Punjab. Idea cellular
footprint currently covers approximately 45% of Indias
population and over 50% of the potential telecom-market.
As a leader in value added services, innovation is central to
idea's vas factory. It is the first cellular company to launch
music messaging with 'cellular jockey', 'background tones',
'group talk', a voice portal with 'say idea' and a complete
suite of mobile email services.
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INTRODUCTIONVodafone, the British mobile company that entered India
after buying Hutchs share and by creating Vodafone Essar
in July 2007, has embarked on a major rebranding exercise
in the country.
The history of Indian mobile industry is not very old, not to
mention the industry as a whole in itself is very new to the
whole world. Telephones have been serving mankind for
quite a long now and can boast of the world largest
redundant legacy system. Thousands of miles of
underground cables run through oceans to connect all the
continents. Telecommunication industry as a whole has not
seen a major
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revolution for a long time with the exception of a few new
innovations in the type of services and call rated. The
advent of wireless communication has brought about a slew
of path breaking technological advancements in the way
people use and see telephones. From being an equipment
kept on the side table for talking, it has walked to occupy
every persons pocket for all his information needs.
Furthermore, the revolution has not ceased and it promises
to bring even more of comfort and connectivity while on the
move.
Recognizing the crucial role that can be played by the
telecommunication sector in Indias development, the
Government of India in 1999 initiated a number of changes
in the telecommunication and regulatory and policy
framework. Through these the Government hoped to
facilitate an increase in telecommunication penetration,
which stood at 1.3% in 1995. The reforms, with an eye on a
telecommunication penetration of 15% by 2010, resulted in
a flurry of private operators entering the market breaking
the monopoly of the incumbent operator Bharat Sanchar
Nigam Limited (BSNL).
Indias 1.1 billion population currently boasts a mobile
telephone penetration rate of just 13 per cent. But it is
growing by more than six million subscribers every month,
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making it the fastest growing market
in the world and the focus of the industry.
At the start of the decade, India was pretty much a telecom
backwater. But now, Indias tele-density has grown by about
100 per cent to 17.16 per cent over the past two years. Last
year it actually grew at a faster rate than China for the first
time in new mobile phone connections.
Even as the mobile telephony market in India is booming,
the number of fixed line telephone subscribers dropped,
suggesting that first-time users of telephones are opting formobile phones. The number of fixed line subscribers was
down to 40.43 million in December as compared to 48.43
million a year ago.
Mobile penetration in India is growing rapidly and it is
becoming increasingly rare to see anyone without a 'hand-
phone' as they are known, whereas growth of internet
access at home is much slower. Rather than listing a web
address, many billboard ads offer an SMS short-code which
people can text to get more information. There are expected
to be somewhere around 200 million subscribers by the end
of the year, with around six million customers being added
every month, so the Indian market is certainly a growth one,
with increased mobile internet access expected to push up
average revenues per user.
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Although the average Indian mobile user remains cost-
conscious because of low-income living and huge size of
mobile subscriber in India uses only SMS or voice services;
new and more multifunctional handset with features like
cameras, FM radio and mobile video. Also, India is the
largest untapped market where the 20% of the total world's
population lives. The Indian telecom industry recently
witnessed its biggest deal - Vodafone bidding for 67% stake
in Hutch-Essar.
The telecom market is at a stake with $22 billion which is
expected to double by 2010. The dramatis personae include
leading names of India IncSunil Bharti Mittal, Anil Ambani,
Kumar Mangalam Birla, Ratan Tata and A K Sinha (of BSNL)
not to mention the 51-year-old Arun Sarin of Vodafone,
whom the Hutch puppy will follow dutifully henceforth. But
for a nation of 1.3 billion people, Indias tele-density of 17%
is dreadful. And therein lies both the opportunity and the
challenge.
About Vodafone
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Vodafone is the world's leading international mobile
communications company. It presently has operations in 25
countries across 5 continents and 40 partner networks with
over 200 million customers worldwide. Vodafone has
partnered with the Essar Group as its principal joint venture
partner for the Indian market.
The Essar Group is a diversified business corporation with
interests spanning the manufacturing and service sectors
like Steel, Energy, Power, Communications, Shipping &Logistics and Construction. The Group has an asset base of
over Rs.400 billion and employs over 20,000 people.
Launch of Vodafone Essar
Vodafone Essar was launched in India on 21st September
2007. Vodafone was welcomed in India with the Hutch is
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now Vodafone campaign. The popular and endearing brand
Hutch was transitioned to Vodafone across India. This
marked a significant chapter in the evolution of Vodafone as
a dynamic and ever-growing brand. This brand unveiled
nationally through a high profile campaign covering all
important media.
Vodafone, the worlds leading mobile telecommunication
company, completed the acquisition of Hutchison Essar in
May 2007 and the company was formally renamed Vodafone
Essar in July 2007. The transition from Hutch to Vodafone isprobably the largest brand change ever undertaken in this
country and arguably as big as any in the world. It is even
larger than Hutchs own previous brand transitions. The
migration from Hutch to Vodafone was one of the fastest
and most comprehensive brand transitions in the history of
the Vodafone Group, with 400,000 multi brand outlets, over
350 Vodafone stores, over 1,000 mini stores, over 35 mobile
stores and over 3,000 touch-points rebranded in two
months, with 60% completed within 48 hours of the launch.
The Vodafone mission is to be the communications leader in
an increasingly connected world enriching customers lives,
helping individuals, businesses and communities be moreconnected by
delivering their total communication needs.
HISTORY
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Original Corporate Logo of Vodafone.
Vodafone itself was formed in 1982 as a joint venture
between Racal Electronics plc's subsidiary Racal Strategic
Radio Ltd (who won one of two UK cellular telephone
network licences) along with Millicom and the Hambros
Technology Trust. In this arrangement Racal owned 80%,
Millicom 15% and Hambros 5%. The network was known as
Racal Vodafone, with the Vodafone name being derived
from the firm's goal of establishing a voice and data
services over cellular telecommunication networks. Hence
VO represented voice and DA symbolized data yielding
the name Vodafone.
Vodafone was launched on 1 January 1985 and later that
year Racal Strategic Radio was renamed Racal
Telecommunications Group Limited in 1985. A year later, on
29 December 1986 Racal Electronics bought out the
minority shareholders of Vodafone for GB110 million. In
September 1988 the company was again renamed Racal
Telecom and on 26 October 1988 Racal Electronics floated
20% of the company a flotation that valued RacalTelecom at GB1.7 billion. On 16 September 1991 Racal
Telecom was demerged from Racal Electronics as Vodafone
Group and the mobile telephony giant was born.
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During the mix 1990s Vodafone began to consolidate itself
on the British high-street. In July 1996 Vodafone acquired
the two thirds of Talkland it did not already own for 30.6
million. On 19 November 1996, in a defensive move,
Vodafone purchased Peoples Phone for 77 million, a 181
store chain whose customers were overwhelmingly using
Vodafone's network. In a similar move the company
acquired the 80% of Astec Communications that it did not
own, a service provider with 21 stores. This made Vodafone
a very visible presence on the British high street andsignificantly increased the company's share of UK mobile
customers.
New Corporate Logo of Vodafone as of 1997.
In 1997 Vodafone introduced its new corporate Speechmark
logo. This represents a quotation mark within a circle. With
the 'O's in the Vodafone logotype being opening and closing
quotation marks, suggesting conversation.
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VODAFONE The Brand!Brand Name : - VODAFONE Ltd.
Brand Person : - ARUN SARIN
Brand Delivery : - World class Cellular Telephony
with value Added Services
Brand Presence : - In the state of Gujarat,
Madhya, Bihar,
Pradesh, Maharashtra, Goa, M.P.,
U.P.,
Andhra Pradesh, Chhatisgarh,
Delhi, etc.
Brand Colour Significances : -
* The White background : - Youth & Energy
* Red Colour : - Energy
* Red Colour Text : - Solidarity
* The VODAFONE : - Innovation
Brand Launch : - 22th August, 2007
A media spent of Rs. 40-42 crores in T.V
advertisements, Print ads, Murals, brand launch
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parties, P.R.Campaigns, in all a high decibel and
Discussed launch.
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Overview
Name of the company : Vodafone ltd.
Size of the unit : Large Scale Unit
Form of organization : Multinational co.
Web site : www.vodafone.in
Year of establishment : 1984 in England
Stage of product : Maturity
Name of the service : Post paid cards
Prepaid cards
Short Message Service
Voice mail services
Vodafone power service
Through continuous innovation, VODAFONEpromises to liberate, stimulate customers from the
shackles of time and spaces
SWOT ANALYSIS OF VODAFONE
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Strengths:The main strength of Vodafone within the
telecommunications market lies in its brand image and
recognition. Vodafone, having established a global presence
and having invested highly in marketing a differentiated
image by promoting a Vodafone life style, currently enjoys a
differentiating advantage that, if exploited properly, can
offer a lead in competition. The presence of Vodafone in
numerous countries within Europe as well as in all part of
the world enhances this image. It allows customers to travel
and enjoy easily the services of their home country
operator. In the few countries that Vodafone is not
physically present (e.g. Norway) it has well established
strategic alliances which allow for a better service of mobile
clients.
Weaknesses:The expansion of Vodafone has been completed at the
expense of direct control of its operations. The company
grew through a process of acquisitions of national
telecommunications companies (e.g. the acquisition of the
third biggest Czech mobile phone operator, Cesky mobile)
rather than organic growth. This increased its subscribers
base quickly, offering direct market knowledge and
immediate additions of customer bases at the expense of
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direct effective control of the subsidiaries. At the same time
though, it implicitly imposed a centralized operational
structure for the group, nominating the UK headquarters as
the leading business unit running a much centralised
marketing and handset procurement at group level. This has
resulted in the neglect of local markets and local
differences, allowing market share to be gained by smaller
local competitors. Due to the highly saturated Western
European market this has resulted in an increase in the
price elasticity of demand, with consumers becomingcontinuously price oriented. This has resulted in high
customer churn rates reaching the level of 32.8% in the UK
compared to O2s 24%.
Opportunities:The telecommunications market, even though highly
saturated in some regions offers great potential due to the
ageing population and the sophistication of the consumers.
It offers great opportunities through a careful market
segmentation and exploitation of particular profitable
segments. Different strategies should be pursued simple
phones and simplified pricing plans to the ageing population
and more updated, sophisticated solutions for younger
generations. The expanding Boundaries of the market could
provide further opportunities by allowing Vodafone to enter
more aggressively into fixedline service and to better enjoy
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the benefits of its high investment in 3G technology.
Moreover the company has undertaken its first steps in
establishing strategic alliances to develop customized
solutions for endusers: Vodafone recently announced two
new partnerships, one with supermarket group ASDA to
launch an ASDA branded mobile service in the UK, and
another with electrical retailer DSG International to provide
mobile solutions to small businesses. This could further be
enhanced to avoid being a lateentrant in this new method
of distribution which offers access to a wide potentialcustomer base.
Threats:The European part of Vodafones market is
characterized by existing high levels of competition. Major
brands such as O2 and TMobile are exploiting the price
sensitivity of customers and in this way they are building astronger image and presence in the market. Indirect
competition is also increasing further, through the presence
of Skype and other related (not only voice) Internetbased
services. This combined with the upcoming European
legislative measures is expected to limit further the tariffs
for the network providers imposing further need for price
cuts which could harm the bottom line profitability of the
company.
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Advertising StrategyAn advertising strategy is a campaign developed to
communicate ideas about products and services to potentialconsumers in the hopes of convincing them to buy those
products and services. This strategy, when built in a rational
and intelligent manner, will reflect other business
considerations (overall budget, brand recognition efforts)
and objectives (public image enhancement, market share
growth) as well. As Portable MBA in Marketing authors
Alexander Hiam and Charles D. Schewe stated, a business's
advertising strategy "determines the character of the
company's public face." Even though a small business has
limited capital and is unable to devote as much money to
advertising as a large corporation, it can still develop a
highly effective advertising campaign. The key is creative
and flexible planning, based on an indepth knowledge of the
target consumer and the avenues that can be utilized to
reach that consumer.
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Today, most advertising strategies focus on achieving three
general goals, as the Small Business Administration
indicated in Advertising Your Business: 1) promote
awareness of a business and its product or services; 2)
stimulate sales directly and "attract competitors'
customers"; and 3) establish or modify a business' image. In
other words, advertising seeks to inform, persuade, and
remind the consumer. With these aims in mind, most
businesses follow a general process which ties advertising
into the other promotional efforts and overall marketingobjectives of the business.
STAGES OF ADVERTISING STRATEGYAs a business begins, one of the major goals of advertising
must be to generate awareness of the business and its
products. Once the business' reputation is established and
its products are positioned within the market, the amount of
resources used for advertising will decrease as the
consumer develops a kind of loyalty to the product. Ideally,
this established and ever-growing consumer base will
eventually aid the company in its efforts to carry their
advertising message out into the market, both through its
purchasing actions and its testimonials on behalf of the
product or service.
Essential to this rather abstract process is the development
of a "positioning statement," as defined by Gerald E. Hills in
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"Marketing Option and Marketing" in The Portable MBA in
Entrepreneurship: "A 'positioning statement' explains how a
company's product (or service) is differentiated from those
of key competitors." With this statement, the business
owner turns intellectual objectives into concrete plans. In
addition, this statement acts as the foundation for the
development of a selling proposal, which is composed of the
elements that will make up the advertising message's "copy
platform." This platform delineates the images, copy, and
art work that the business owner believes will sell theproduct.
With these concrete objectives, the following elements of
the advertising strategy need to be considered: target
audience, product concept, communication media, and
advertising message. These elements are at the core of an
advertising strategy, and are often referred to as the"creative mix." Again, what most advertisers stress from the
beginning is clear planning and flexibility. And key to these
aims is creativity, and the ability to adapt to new market
trends. A rigid advertising strategy often leads to a loss of
market share. Therefore, the core elements of the
advertising strategy need to mix in a way that allows the
message to envelope the target consumer, providing ample
opportunity for this consumer to become acquainted with
the advertising message.
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TARGET CONSUMER The target consumer is a complex
combination of persons. It includes the person who
ultimately buys the product, as well as those who decide
what product will be bought (but don't physically buy it),
and those who influence product purchases, such as
children, spouse, and friends. In order to identify the target
consumer, and the forces acting upon any purchasing
decision, it is important to define three general criteria in
relation to that consumer, as discussed by the Small
Business Administration:
Demographicsge, gender, job, income, ethnicity, and
hobbies.
Behaviorshen considering the consumers' behavior an
advertiser needs to examine the consumers'
awareness of the business and its competition, the
type of vendors and services the consumer currently
uses, and the types of appeals that are likely to
convince the consumer to give the advertiser's product
or service a chance.
Needs and Desiresere an advertiser must determine
the consumer needsoth in practical terms and in terms
of self-image, etc.nd the kind of pitch/message that will
convince the consumer that the advertiser's services or
products can fulfill those needs.
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PRODUCT CONCEPT The product concept grows out of the
guidelines established in the "positioning statement." How
the product is positioned within the market will dictate the
kind of values the product represents, and thus how the
target consumer will receive that product. Therefore, it is
important to remember that no product is just itself, but, as
Courtland L. Bovee and William F. Arens stated in
Contemporary Advertising, a "bundle of values" that the
consumer needs to be able to identify with. Whether
couched in presentations that emphasize sex, humor,romance, science, masculinity, or femininity, the consumer
must be able to believe in the product's representation.
COMMUNICATION MEDIA The communication media is the
means by which the advertising message is transmitted to
the consumer. In addition to marketing objectives and
budgetary restraints, the characteristics of the targetconsumer need to be considered as an advertiser decides
what media to use. The types of media categories from
which advertisers can choose include the following:
Printrimarily newspapers (both weekly and daily) and
magazines.
AudioM and AM radio.
Videoromotional videos, infomercials.
World Wide Web.
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Direct mail.
Outdoor advertisingillboards, advertisements on public
transportation (cabs, buses).
After deciding on the medium that is 1) financially in reach,
and 2) most likely to reach the target audience, an
advertiser needs to schedule the broadcasting of that
advertising. The media schedule, as defined by Hills, is "the
combination of specific times (for example, by day, week,
month) when advertisements are inserted into media
vehicles and delivered to target audiences."
ADVERTISING MESSAGE An advertising message is guided
by the "advertising or copy platform," which is a
combination of the marketing objectives, copy, art, and
production values. This combination is best realized after
the target consumer has been analyzed, the product
concept has been established, and the media and vehicles
have been chosen. At this point, the advertising message
can be directed at a very concrete audience to achieve very
specific goals. Hiam and Schewe listed three major areas
that an advertiser should consider when endeavoring to
develop an effective "advertising platform":
What are the product's unique features?
How do consumers evaluate the product? What is likely
to persuade them to purchase the product?
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How do competitors rank in the eyes of the consumer?
Are there any weaknesses in their positions? What are
their strengths?
Most business consultants recommend employing an
advertising agency to create the art work and write the
copy. However, many small businesses don't have the up-
front capital to hire such an agency, and therefore need to
create their own advertising pieces. When doing this a
business owner needs to follow a few important guidelines.
COPY When composing advertising copy it is crucial to
remember that the primary aim is to communicate
information about the business and its products and
services. The "selling proposal" can act as a blueprint here,
ensuring that the advertising fits the overall marketing
objectives. Many companies utilize a theme or a slogan as
the centerpiece of such efforts, emphasizing major
attributes of the business's products or services in the
process. But as Hiam and Schewe caution, while "something
must be used to animate the theme are must be taken not
to lose the underlying message in the pursuit of memorable
advertising."
When writing the copy, direct language (saying exactly what
you mean in a positive, rather than negative manner) has
been shown to be the most effective. The theory here is that
the less the audience has to interpret, or unravel the
message, the easier the message will be to read,
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understand, and act upon. As Jerry Fisher observed in
Entrepreneur, "Two-syllable phrases like 'free book,' 'fast
help,' and 'lose weight' are the kind of advertising messages
that don't need to be read to be effective. By that I mean
they are so easy for the brain to interpret as a whole
thought that they're 'read' in an eye blink rather than as
linear verbiage. So for an advertiser trying to get attention
in a world awash in advertising images, it makes sense to
try this message-in-an-eye-blink route to the public
consciousnesse it for a sales slogan or even a productname."
The copy content needs to be clearly written, following
conventional grammatical guidelines. Of course, effective
headings allow the reader to get a sense of the
advertisement's central theme without having to read much
of the copy. An advertisement that has "50% Off" in boldblack letters is not just easy to read, but it is also easy to
understand.
ART WORK AND LAYOUT Small business owners also need to
consider the visual rhetoric of the advertisement, which
simply means that the entire advertisement, including blank
space, should have meaning and logic. Most industryexperts recommend that advertisers use short paragraphs,
lists, and catchy illustrations and graphics to break up and
supplement the text and make the document both visually
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inviting and easy to understand. Remember, an
advertisement has to capture the reader's attention quickly.
ADVERTISING BUDGET The advertising budget can be
written before or after a business owner has developed the
advertising strategy. When to make a budget decision
depends on the importance of advertising and the resources
available to the business. If, for instance, a business knows
that they only have a certain amount of money for
advertising then the budget will tend to dictate what
advertising is developed and what the overall marketing
objectives will be. On the other hand, if a business has the
resources available, the advertising strategy can be
developed to meet predetermined marketing objectives. For
small businesses, it is usually best to put together an
advertising budget early in the advertising process.
The following approaches are the most common methods of
developing an effective budget. All the methods listed are
progressive ones that look to perpetuate growth:
Percentage of future or past sales
Competitive approach
Market share
All available funds
The task or objective approach
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The easiest approachnd thus the one that is most often
useds the percentage of future or past sales method. Most
industry experts recommend basing spending on anticipated
sales, in order to ensure growth. But for a small business,
where survival may be a bigger concern than growth, basing
the advertising budget on past sales is often a more
sensible approach to take.
METHODS OF ADVERTISINGSmall business owners can choose from two opposite
philosophies when preparing their advertising strategy. The
first of these, sometimes called the push method, is a
stance wherein an advertiser targets retail establishments in
order to establish or broaden a market presence. The
second option, sometimes called the pull method, targetsend-users (consumers), who are expected to ask retailers
for the product and thus help "pull" it through the channel of
distribution. Of course, many businesses employ some
hybrid of the two when putting together their advertising
strategy.
PUSH METHOD The aim of the push method is to convinceretailers, salespersons, or dealers to carry and promote the
advertiser's product. This relationship is achieved by
offering inducements, such as providing advertising kits to
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help the retailer sell the product, offering incentives to carry
stock, and developing trade promotions.
PULL METHOD The aim of the pull method is to convince the
target consumer to try, purchase, and ultimately repurchase
the product. This process is achieved by directly appealing
to the target consumer with coupons, in-store displays, and
sweepstakes.
ANALYZING ADVERTISING RESULTS
Many small businesses are distressingly lax in taking steps
to monitor whether their advertising efforts are having the
desired effect. Instead, they simply throw a campaign out
there and hope for the best, relying on a general sense of
company health when determining whether to continue,
terminate, or make adjustments to advertising campaigns.
These small business owners do not seem to recognize that
myriad factors can influence a business's fortunes (regional
economic straits, arrival of new competition, seasonal
buying fluctuations, etc.). The small business owner who
does not bother to adequately analyze his or her advertising
efforts runs the danger of throwing away a perfectly good
advertising strategy (or retaining a dreadful one) if he or she
is unable to determine whether business upturns or
downturns are due to advertising or some other factor.
The only way to know with any accuracy how your
advertising strategy is working is to ask the consumer, the
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opinions of whom can be gathered in several ways. Although
many of the tracking alternatives are quite specialized,
requiring either a large budget or extensive advertising
research expertise, even small businesses can take steps to
measure the effectiveness of their advertising strategies.
The direct response survey is one of the most accurate
means of measuring the effectiveness of a company's
advertising for the simple reason that it measures actual
responses to a business's advertisements. Other
inexpensive options, such as use of redeemable coupons,can also prove helpful in determining the effectiveness of an
advertising campaign.
ADVERTISING AGENCIESThe decision whether or not to use an advertising agency
depends both on a company's advertising strategy and its
financial resources. An agency has professionals who can
organize, create, and place advertising so that it will meet
established objectives better than most small businessescan do on their own, but of course the expense associated
with soliciting such talent is often prohibitive for smaller
companies. Still, some small- and mid-sized businesses have
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found that agencies can be helpful in shaping and
monitoring advertising strategies.
Because of their resources and expertise, agencies are
useful when a business is planning a broad advertising
campaign that will require a large amount of resources. An
advertising agency can also help track and analyze the
effectiveness of the advertising. Some criteria to consider
when choosing an agency include size of the agency, size of
their clients (small companies should avoid allying
themselves with agencies with a large stable of big
corporate clients so that they are not treated as
afterthoughts), length of time that the principals have been
with the agency, the agency's general advertising
philosophy, and the primary nature of the agency's accounts
(are they familiar with your industry and the challenges
involved in differentiating your company's products orservices from others in that industry?).
Vodafones Marketing Strategies: Hutchto Vodafone
Vodafones new advertising campaign in India carried on
with the same popular pug that has become a brand
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ambassador for Hutch. Where ever you go, our network
follows, was the previous slogan with the pug following the
child wherever he goes. Now, with Hutchison Essar
becoming part of the Vodafone Group, the new campaign
had started with Vodafone Essar earmarking Rs. 2.5 billion
on the transition from Hutch to Vodafone. The main
message of the brand transition exercise: The new Vodafone
is the same old Hutch. In the advertisement, the pug sees a
new home when it returns after an outing and feels the
change is better. The new catch phrase will be Make themost of now.
Vodafone had tied up with Star India to run a complete
roadblock of its fresh campaign on the entire network by
unveiling the 24-hour nationwide rebranding campaign.
Vodafone used all of the commercial airtime across all 13
channels in five languages (Hindi, Tamil, Bengali, Marathi
and English) from 9 pm on 20 September to 9 pm on
September 21. This exercise included TV commercials,
transition bumpers and contest spots to promote the
Vodafone Essar brand. Commercial spots had also been
purchased on Sony.
Conventionally awareness for a new brand takes some time
to build. However, Vodafone wanted to achieve this task at
the shortest possible time. Hence, Maxus and Star Network
worked closely to address this challenge and came up with
the idea wherein during the day of the launch a complete
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roadblock on the Star Network channels was conceptualized.
Considering that the Star Network is the lead network in
India, this was the most apt platform for Vodafone launch.
This strategy helped not only in achieving build rapid brand
awareness but also breaks the clutter during such an
important launch in the most happening category telecom.
This is a first of its kind mega media initiative in India by any
brand. While the campaign was heavy on television, it also
included all other media vehicles. The print campaign kicked
off on 21 September, a day after the television splash.While the brand campaign had been addressing the
transformation, the Company, on the other hand was swiftly
preparing for a price war in the Indian telecom space.
Indeed, it was preparing to provide mobile handsets to new
subscribers at ultra-cheap prices, ranging from about $19 to
$25.
Vodafone Essar launched low priced cell phones in India
under the Vodafone brand, and also co-branded handsets
sourced from major global vendors. By bringing in millions
of low-cost handsets from across the globe into India,
Vodafone Essar distributed bundled handsets through its
existing 400,000 distribution outlets. By flooding the market
with its low-cost handsets, Vodafone also became a mass
mobile phone brand like Nokia, Samsung, Motorola, and
Sony Ericsson in addition to continuing as telecom services
provider.
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Previously, similar handset-driven expansion strategies to
grow subscriber bases were adopted by CDMA players, like
RCOM and Tata Teleservices. Vodafone is the first GSM
operator to follow suit.
The Vodafone mission is to be the communications leader in
an increasingly connected world enriching customers
lives, helping individuals, businesses and communities be
more connected by delivering their total communication
needs. Vodafones logo is a representation of that belief
The start of a new conversation, a trigger, a catalyst, a markof true pioneering.
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Vodafones Advertising Strategies:Hutch to Vodafone
Advertising is probably one of the most frequently used
vehicles for Rebranding, as it is fairly easy, flexible and
quick to change. It is a powerful way of reaching a broad or
targeted audience quickly and is effective at signalling a
change in positioning, however real or broad that may be.
There are many examples of where advertising has either
repositioned or strengthened brands, other good examples
of where advertising has built a new position for a brand or
built a strong emotional link with the public are where
companies have created a sort of soap opera out of their
advertising.
The Advertising agency of Hutch and now Vodafone, Ogilvy
& Mather (O&M), had a two-fold task to achieve: announcethe entry of Vodafone into India and highlight the
metamorphosis of Hutch into Vodafone. O&M realised that
they had a fantastic property in the Hutch pug, which they
had been using for about five years. Therefore, to show the
transition from Hutch to Vodafone, O&M launched a rather
direct, thematic ad showing the trademark pug in a garden,
moving out of a pink coloured kennel which symbolised
Hutch making his way into a red one that is the Vodafone
colour. A more energetic, chirpier version of the You and I
tune associated with Hutch was played towards the end,
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and it concludes with Change is good. Hutch is now
Vodafone.
O&M has also rolled out four Commercials featuring Hutchs
animated boy and girl, introducing the new brands logo to
consumers. The four creatives which were of five seconds
each included the duo peeping over a wall to see the logo;
parasailing with the logo flying high behind them; releasing
a rocket bomb wherein the explosion reveals the logo; and
lastly, drawing curtains aside to show the logo.
Four other ads with the pug did the rounds of telly screens.These five and 10 second spots cast the dog in situations
where he, literally, saw red, using the colour as a visual
mnemonic to remember the brand by. The pug was shown
in a red basket, popping up from a red cart, drying himself
on a red mat, and hiding in a red blanket. Each of these
made use of the Hutch is now Vodafone tagline.
The print ads, in all major languages in several leading
dailies, were kept unbelievably simple: a still shot of the pug
inside a red kennel. The same creative was used in outdoor
hoardings as well, in all the 16 circles in which Vodafone
now operates.
It wasnt easy integrating Vodafone with Hutch; the latter,
as is known, is a subtle, understated brand, while globally,
Vodafone represents high energy, dynamism and young
vitality all represented by its bright red speech mark logo.
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And so they put in elements such as a more energetic tune
and feel to the ads.
A few advertisements include:
Hutch is now Vodafone: If you watch any of the star
channels or tuned into 20-20 world cup, you would have
seen this ad. On 11 February 2007, Vodafone agreed to
acquire the controlling interest of 67% held by Cheung Kong
Holdings in Hutch-Essar for US$11.1 billion and now had to
rebrand itself so it has decided to run a new ad series which
piggy banked on Hutchs dog mascot and the theme
Change is Good. This required nearly 250 crores of
spending by Vodafone but they have successfully painted
the town red. An interesting part of this campaign was on
the opening day roadblock where they made a deal with
Star India so that besides them no other commercials were
aired (apart from in-channel promos) on the Star Indiaschannels for 24 hours.
Vodafone Valentine Day Special Ads: Vodafone had
released a simple and sweet ad for musical greetings
targeted at couples during the valentine week the feature of
this campaign is its simplicity and believability and is quite
well received. It uses the positioning Make the most ofnow enjoy the video
Vodafone Chota Credit Ink Ad: This new ad had come as
refreshing change and more so that this ad takes a very
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refreshing look at school and at fountain pens. This ad
creates a wonderfully subtle message which really puts the
point of chota (small) credit across.
RESEARCH METHODOLOGYWHAT IS RESEARCH METHODOLOGY?
It is the science that tells the method of doing research .It
mainly consists of following steps;
Developing research design
Determining the data collection method
Developing sampling plan
Conducting field work
Research in common parlance refers to a search forknowledge. One can also define research as a scientific
and systematic search for pertinent information on aspecific topic.
The word research has been derived from French wordResearcher means to search.
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DEFINITION OF RESEARCH METHODOLOGY:
Research may be defined as "a careful investigation orenquiry specially through search for new facts in any branch
of knowledge "in a technical sense research comprisedefining &redefining problems, formulating hypothesis orsuggested solutions; collecting ,organizing &evaluatingdata; making deductions & reaching conclusion & at lastcarefully testing the conclusion to determine weather theyfit the formulating hypothesis.
RESEARCH DESIGN:
Research Design is the conceptual structure withinwhich research is conducted. It constitutes theblueprint for collection, measurement and analysis ofdata. The design used for carrying out this research isDescriptive.RESEARCH DESIGN USED IN THE SURVEY:
Considering the objectives of the study and also theimportance of the decision it was decided to undertake anexploratory survey.
DATA COLLECTION:
Types of data:
1. Primary data- primary data are those which are freshand collected for the first time and thus happen to beoriginal characters.
2. Secondary data - It is the data that is already beencollected by someone else.
In this survey I used both primary and secondary data. Allinformation collected through questionnaire.
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DATA SOURCE:
The sources of collection of secondary data are: Questionnaire
Books
Websites
Magazine
Brochure
SUGGESTIONS
1. SMS bones card rates should be minimized.
2. The company should go for increasing the users of
GPRS.
3. The company should make attention on the users
between age of 18-27 who are students.
4. The company should make efforts for increasing
the new connection users, who earns more than
20000.
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5. The company should improve the service of
55655 and minimized its tariff.
6. The company should make attention on Caller
tunes and SMS users.
7. The company should concentrate on the
customers who are students because there are
very few customers below 18 years and shouldmaintain the customers above 40 years because
they cover a large area of consumption.
RECOMMENDATIONS
1. Sales promotion technique should be used tosurvive in the market and to increase the sales of
new customers.
2. Advertising media should be meaningful and able
to persuade the customers.
3. Vodafone should make attention on the young
age generation and on those customers who
expend a large amount on calls and earners more
than 20000.
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4. Vodafone should provide the facility which the
customers want after buying the new connections.
5. The company should make their calls easy so that
the customers can gain knowledge of the services
like 55655.
6. The company should concentrate for satisfying
their customers. Vodafone should provide thecharming schemes for maintaining their old
costumers and for attracting new age generation.
7. Advertisement media should be like that the
costumers can receive the knowledge and
information about Vodafone so that they can trust
on it. LIMITATIONS
1. The responses collected are perception based so
the nature variant can be biasing factor.
2. The result of the study may not be universally
applicable due to regional constraint.
3. I was not able to cover the whole Rohtak city.
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4. The time for research was limited.
5. The sample size was small.
6. Language constraints were encountered the
project sometimes when the questions had to
transmitted to Hindi for response
BIBLIOGRAPHY1. ADVERTISING MANAGEMENT:
- By Philip Kotler
2. Web site:
- www.vodafone.in- www.vodafone.com
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